The Latest Investing Trend – Renter in One City, Landlord in Another

The Latest Investing Trend – Renter in One City, Landlord in Another

It’s no secret that investing in real estate is a great way to build wealth. Homeownership is the simplest way to invest in real estate. But what if you can’t afford to buy a home where you live? Or perhaps your lifestyle requires you to be mobile and flexible? 

A new investing trend has emerged in the past few years that allows people to capitalize on lower property values in affordable locations without requiring the investor to move. For example, someone may rent in Los Angeles but have a rental property in Nashville. Not only does this start the goal of building wealth through hopeful appreciation but can also offset the higher costs of living in the primary market due to rent acceleration. 

While this strategy can be financially beneficial. There are a few considerations before diving into the investment market: 

· Consider a variety of markets and visit them in person to understand the neighborhood and property. 

· Find a local, experienced property manager and budget for this additional cost. 

· Create guidelines that allow the property manager to incur basic costs for repairs, maintenance, and unexpected issues. 

· Make regular visits to the home to make sure the community maintains the standards you expect. 

There are many reasons why someone might choose to rent their primary residence. Fortunately, there are great ways to still invest in real estate and take advantage of lower sales prices for homes in other parts of the country. With a little planning and research, this type of investment can be a great addition to any financial portfolio.

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